2016 Financial Year Results Presentation25 August 2016

MMA Offshore LimitedFor

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Disclaimer

This document contains general background information about the activities of MMA Offshore Limited (MMA) current at the date this document was released to the Australian Securities Exchange (ASX). It is information in a summary form only and does not contain all the information necessary to fully evaluate any transaction or investment. It should be read in conjunction with MMA’s other periodic and continuous disclosure announcements to the ASX available at www.asx.com.au.

MMA makes no representation or warranty (express or implied) as to the accuracy, reliability or completeness of this document. MMA and its directors, officers, employees, agents and associates will have no liability for any statements, opinions, information or matters (express or implied) arising out of, or contained in or derived from, or for any omissions from this document, except liability under statute that cannot be excluded.

Not a prospectus: This document is not a prospectus or a product disclosure statement under the Corporations Act 2001 (Cth) and has not been lodged with the Australian Securities and Investment Commission (ASIC).

Not investment advice: The information provided in this document is not intended to be relied upon as advice to investors or potential investors andhas been prepared without taking into account the recipient’s investment objectives, financial circumstances or particular needs. Any investment decision should be made based solely upon appropriate due diligence. Recipients of this document are advised to consult their own professional advisers. An investment in any listed company, including MMA, is subject to significant risks of loss of income and capital.

Future performance: This document contains certain forward-looking statements. The words 'anticipate', 'believe', 'expect', 'project', 'forecast', 'estimate', 'likely', 'intend', 'should', 'could', 'may', 'target', 'plan' and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of MMA, and its officers, employees, agents and associates, that may cause actual results to differ materially from those expressed or implied in such statements. Actual results, performance or outcomes may differ materially from any projections and forward-looking statements and the assumptions on which those assumptions are based. You should not place undue reliance on forward-looking statements and neither MMA nor any of its directors, employees, servants, advisers or agents assume any obligation to update such information.

Risks: An investment in MMA Securities is subject to investment and other known and unknown risks, some of which are beyond the control of MMA and MMA's directors, employees, servants, advisers or agents. MMA does not guarantee any particular rate of return or the performance of MMA nor does it guarantee the repayment of capital from MMA or any particular tax treatment.

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FY2016 Summary

Revenue $481.1m 39.6% EBITDA $75.5m 65.4% (after redundancy costs of $3.3m and doubtful debts

provision of $7.4m) EBIT -$13.5m 115.5% (pre-impairment) EPS -5.4c 136.0% (pre-impairment) Reported Net Loss after Tax $(144.0)m after $139m before tax, non-cash impairment

charge Operating cash flow $120.2m 35.2% Cash at Bank $49.7m Gearing 53.9% (post impairment) Continuing support of Banking Syndicate

Operations severely impacted by ongoing adverse market conditions Rates and utilisation at historical lows Vessel sales programme ongoing but market conditions remain difficult Secured a number of significant contract wins during the year Exceeded $15 million cost reduction target Ongoing focus on operational excellence and business efficiency to position the

Company for improved market conditions Maintained excellent safety performance

Financial

Operating

Adverse oil and gas market conditions negatively impacted financial performance during FY2016.

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Key Financials (pre-impairment)

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Balance Sheet (post-impairment)

Gearing has increased to 53.9% as a result of the impairment charge

Debt Facilities - In February 2016, MMA agreed a number of amendments to the terms and financial covenants of its Syndicated Loan Facility with the members of the Syndicate, in response to the difficult trading conditions in the offshore oil and gas industry. On 24 August 2016, the Company received approval of some further amendments to the terms and financial covenants of the Facility from the Syndicate and MMA has committed to an increase in the annual principal repayment over the remaining term of the Facility

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MMA continues to achieve improvements in its safety culture and performance.

Health, Safety and Environment

TRCF improved by 70% to 0.36 in FY16; 89% improvement over the past 3 years

Target 365 strategy continues to evolve and produce sustainable improvements in safety performance and culture

Recently launched Target 365 Critical Controls programme focusing on the 8 highest risk activities across the business

Continuing to focus on improvements to systems and processes and focus on lead indicators

Meeting or exceeding environmental standards across the organisation

2.7

4.7

3.3

1.2 0.36

2012 2013 2014 2015 2016

Total Recordable Case Frequency(per million hours)

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Cost Reduction

MMA has taken significant steps to reduce its cost base and will continue to focus on further reducing costs in the current environment

Overhead costs reduced by $20m, down 24% on the previous financial year with further savings to occur in FY17

In addition, achieved significant reductions in direct operating costs:‒ Savings of approximately 25% on key expenditure items through supplier negotiations and re-

tendering of key contracts‒ Business efficiency initiatives‒ Layup programme and strict control of costs on vessels between contracts‒ General culture of cost control across the business

Headcount reduced by over 50% over the past 2 years (excluding crew) Material salary package reductions for non-marine personnel – base salaries frozen since July 2015

and no short or long term bonuses paid for the past 2 years Focus on minimising all variable costs across the business Ongoing focus on reducing cost in all areas of the business whilst maintaining high quality of operations

and safety standards

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52.544.5

59.1

77.1

-15.4

-40

-20

0

20

40

60

80

2012 2013 2014 2015 2016

Vessel OperationsFinancial overview Adverse market conditions significantly impacted performance 2H lower than 1H with major Australian contracts completing $100m vessel impairment charge

Operational overview Utilisation – Average 59% (FY15 75%) Rates remain under pressure across all regions and vessel

segments Australia:

− Secured 2 major long term production support contracts (Woodside, ConocoPhillips)

− Developed vessel sharing arrangements between key clients to improve utilisation and create direct cost savings for clients

− INPEX production support contract commenced August 2016 International:

− Secured term contract in West Africa for MMA Privilege− Extended key contracts in Middle East and Thailand but at lower

rates. Key contracts in Malaysia suspended due to rig layup− Continuing to expand our presence in the Middle East

Newbuild Vessels:− Delivered 3 new high specification vessels into the fleet with all 3

vessels committed to long term contracts− Final 2 newbuild vessels scheduled for completion by October

2016 Australian EBA negotiations are progressingOutlook Oversupply and low demand conditions expected to continue

through FY17

1 EBIT and ROA are shown excluding the impact of the $100m impairment charge against vessel assets in FY16 and $100m impairment charge in FY2015

Vessel Operations FinancialsVariance 30 Jun 2016 30 Jun 2015

Revenue 40.7% $414.7M $699.8M

EBITDA 67.5% $64.8M $199.1M

EBITDA / Revenue 12.9% 15.6% 28.5%

EBIT (pre-impairment)1 120.0% -$15.4M $77.1M

EBIT / Revenue1 14.7% -3.7% 11.0%

Segment Assets 11.6% $937.7M $1,061.3M

ROA (pre-impairment)1 8.7% -1.5% 7.2%

Vessel EBIT1 ($M)

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Vessel Sales

MMA has now sold 17 vessels and continues to focus on its vessel sales programme albeit in a very difficult market

MMA’s vessel sales strategy is delivering results but market conditions resulted in the Company falling short of its $78m target for FY16

17 vessels have now been sold for a total of A$40m

‒ 3 Barges

‒ 7 Tugs and smaller vessels

‒ 7 AHT / AHTSs (4,000 – 5,150 bhp)

Continuing to focus on rationalising the 5,000 bhp AHTS fleet and other selected vessels

Vessels are being actively traded in spot market whilst being marketed for sale

Cost control programme in place for vessels laid up between contracts

MMA has recently reviewed and refreshed its vessel sales strategy to accelerate sales through FY17

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MMA delivered 3 high specification vessels into the fleet during FY16 all of which are on long term contracts. The remaining 2 vessels are close to completion and are being tendered in the IMR market.

Vessel Details Completion Contract

MMA PrivilegeMulti-purpose Work boat designed for cost effective platform commissioning, field maintenance tasks and coil tubing operations

2H FY16 Commenced 1 + 1 year contract in Cote d’Ivoire in April 2016

MMA PrestigeROV Support Vessel designed to offer superior and cost effective Inspection, Maintenance and Repair (“IMR”) solutions to clients; 100 man accommodation with 100t AHC subsea crane

Q1 FY17 Currently being tendered for IMR opportunities in MMA’s key regions

MMA PinnacleROV Support Vessel designed to offer superior and cost effective Inspection, Maintenance and Repair (“IMR”) solutions to clients; 100 man accommodation with 150t AHC subsea crane

Q2 FY17 Currently being tendered for IMR opportunities in MMA’s key regions

MMA Plover and BrewsterHigh specification platform supply vessels with sophisticated chemical carrying capabilities unique to the INPEX’s Ichthys LNG project

2H FY16 Contracted to INPEX for Ichthys production support – 5 year contract + 2 x 5 year options

Newbuild Vessels

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36.7

52.3

36.9

18.613.1

0

10

20

30

40

50

60

2012 2013 2014 2015 2016

Dampier Supply Base

Dampier Supply Base FinancialsVariance 30 Jun 2016 30 Jun 2015

Revenue 29.7% $62.2M $88.5M

EBITDA 22.8% $20.0M $25.9M

EBITDA / Revenue 2.9% 32.2% 29.3%

EBIT (pre-impairment)1 29.6% $13.1M $18.6M

EBIT / Revenue1 nil 21.0% 21.0%

Segment Assets 47.1% $71.0M $134.3M

ROA (pre-impairment)1 0.7% 10.8% 11.5%

Financial overview Revenue and EBIT (pre-impairment) down 30%

due to reduced activity in the region Second half activity significantly lower Redundancy costs of $0.9m expensed Non-cash asset impairment charge of $36m

Operational overview Maintaining key clients although at lower levels of

activity and rates Drilling activity at historically low levels impacting

wharf visits Implemented a range of cost reduction and

productivity improvement measures during the year

Targeting alternative clients to increase land and services utilisation

Outlook Experiencing historically low demand for services

across exploration, construction and production sectors of the market which will lead to a substantial reduction in earnings in FY17

1 EBIT and ROA are shown excluding the impact of the $36m asset impairment charge in FY16 and the $20.7m impairment charge against Supply Base goodwill in FY2015

Dampier Supply Base EBIT1 ($M)

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2.13.5 3.1 -0.2

-2.9

-4

-2

0

2

4

2012 2013 2014 2015 2016

Dampier Slipway

Dampier Slipway FinancialsVariance 30 Jun 2016 30 Jun 2015

Revenue $12.9m $9.8M $22.7M

EBITDA $2.6m -$2.1M 0.5M

EBITDA / Revenue 23.6% -21.4% 2.2%

EBIT (pre-impairment)1 $2.7m -$2.9M -$0.2M

EBIT / Revenue1 28.5% -29.4% -0.9%

Segment Assets 48.3% $7.5M $14.5M

ROA (pre-impairment)1 21.9% -23.1% -1.2%

Financial overview Revenue $9.8m, down 56.8%; EBIT loss of -$2.9m (pre-

impairment) Margins down significantly due to increased competition

and fixed overhead Redundancy costs of $0.5m expensed during the year Non-cash impairment charge $3.0m

Operational overview Significantly reduced activity due to:

– A reduction in the number of vessels operating in the region;– Strong competition from South East Asian shipyards; and – Cost cutting by vessel operators impacting the amount of

repairs and maintenance work undertaken.

Docked 28 vessels, including 19 third party vessels (FY15: 46)

Ongoing focus on servicing terminal tug operators in the region

Business has been significantly restructured to minimise permanent workforce and utilise contract labour to enable the business to better match costs with workflow

Using Slipway as a cost effective lay up facilityOutlook Activity expected to remain subdued Focus is on reducing costs and improving financial

performance

Slipway EBIT ($M)

1 EBIT and ROA are shown excluding the impact of the $3m impairment charge in FY16 12

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Broome Supply Base JV

Broome Supply Base is operated under a 50/50 joint venture with Toll Holdings Limited

Financial overview Reduced drilling activity in the region has impacted

earnings during FY16 MMA’s 50% share of NPAT $2.6m (FY15 $3.4m)

Operational overview Shell drilling programme completed in 1H FY16 INPEX drilling programme reduced from two rigs to a

single rig during 2H FY16 Significant business restructuring completed during the

year to align with reduced activity levels Marketing Base to alternative clients and industries

Outlook Continuing to support INPEX production drilling

campaign through FY17 Expect market activity in the region to remain subdued

through FY17

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Market Outlook – Segments

Lower demand driven by the current oil price combined with an over supply of vessels is expected to result in ongoing challenging conditions for the offshore vessel market.

Exploration Support

Construction & Project Support

Production Support

The offshore operating rig count is at historical low levels in most regions throughout the world.

The Middle East is one of the few areas showing stability as the region continues to maintain production rates

Recent rig charters in SEA , India and Australia are signs that operators may be looking to take advantage of current very low rig hire rates

Construction activities generally only relate to projects sanctioned prior to the market downturn

Smaller brownfield scopes are beginning to appear which should marginally increase utilisation

Activity in Australia is expected to continue at lower levels as major LNG projects move from construction to commissioning and into production

Activity related to production support remains consistent albeit at lower rates

Opportunities relate to new facilities coming online which had been sanctioned prior to the current downturn, and the retendering of existing contracts held by competitors

MMA’s focus remains on delivering cost effective vessel support services to clients through new vessel configurations or combinations that provide lower cost solutions for clients and maintain utilisation of MMA’s fleet

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Market Outlook – Regions

All regions are experiencing lower rates and utilisation. Lay-up of vessels continues as vessel owners look to conserve cash which may reduce supply.

South East Asia

Australia

Vessel charter rates have stabilised at lower levels with vessel returns now marginal. MMA’s strategy is to ensure that lay-up costs are minimised whilst ensuring vessel availability at short notice

Malaysia – 1 large AHTS is working on contract and 1 large PSV is contracted in the spot market

Myanmar – 1 vessel on short term contract and bidding term PSV work for upcoming drilling scopes

Thailand – 2 AHTS vessels and an accommodation barge currently on term contracts

Intra-region towage and supply work making up the majority of spot utilisation for fleet

Working with key partner to create greater capability on the MMA Prestige to increase marketability of the vessel in the region

The Australian market is relatively stable in terms of production support. Construction work is available in short scopes as existing projects move into commissioning and production phases

Tendering decommissioning work scope

Recently completed a vessel work scope in New Zealand which is opening new markets for MMA

Tendering commissioning work scopes for Prelude and Ichthys LNG projects

Optimisation of supply and production support work will continue as operators look for more cost effective solutions

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Market Outlook – Regions (contd)

Middle East

Africa

This market has recently come under additional pressure as operators look to reduce costs

MMA forced to reduce rates on key contracts to avoid cancellation

Commencing term contract of large accommodation vessel with key construction / maintenance client

Expanding skill base in the Dubai regional office to enhance service delivery in region

Looking to leverage long term service contracts and alliances to increase utilisation of the spot fleet in the region

West African market remains flat with reduced activity and a significant oversupply of vessels, especially PSVs

Maintaining limited exposure to the African market with 4 vessels operating in the region:

− MMA Privilege on term contract in Cote d’Ivoire

− Remaining vessels working spot market

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Summary

MMA’s operations continue to be impacted by the ongoing adverse oil and gas market conditions

Vessel utilisation and charter rates at historic lows

Ongoing focus on maintaining our competitive advantage through operational excellence and delivering innovative solutions to clients to meet their requirements in the current market

Signed a number of significant long term contracts during the year and implemented a number of unique vessel sharing agreements

Supply Base and Slipway earnings significantly impacted by reduced activity

Cost reduction programme delivered significant savings in FY16 and is an ongoing focus into FY17

Vessel sales programme delivering results with 17 vessels sold to date

Newbuild programme almost complete with 3 new vessels delivered into the fleet in FY16 and the final 2 vessels close to completion; minimal capital expenditure requirement post completion

Maintained an excellent safety record during the year with Target 365 delivering positive results

Focus on strengthening the balance sheet and repaying debt during FY17 to better match debt levels with earnings in the current environment

Receiving ongoing support from Banking Syndicate - recently negotiated further amendments to the terms and financial covenants of the Company’s Syndicated Loan Facility in response to the ongoing difficult trading conditions

MMA continues to take steps to streamline the business to position itself for when the market recovers

Given the uncertain outlook in the oil and gas markets, we do not expect to see an improvement in market conditions during FY17

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For further information contact

Jeffrey Weber – Managing Director

MMA Offshore Limited

Telephone: (+61) 8 9431 7431 Facsimile: (+61) 8 9431 7432

Email: Jeff.Weber@mmaoffshore.com

Peter Raynor – Chief Financial Officer

MMA Offshore Limited

Telephone: (+61) 8 9431 7431 Facsimile: (+61) 8 9431 7432

Email: Peter.Raynor@mmaoffshore.com

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Glossary of Terms

AHT Anchor Handling Tug LNG Liquefied Natural Gas

AHTS Anchor Handling Tug Supply Vessel NPAT Net Profit after Tax

DP Dynamic Positioning NTA Net Tangible Assets

EBA Enterprise Bargaining Agreement OSV Offshore Supply Vessel

EBIT Earnings before Interest and Tax PSV Platform Supply Vessel

EBITDA Earnings before Interest, Tax, Depreciation and Amortisation

ROA Return on Assets

EPS Earnings per Share ROE Return on Equity

FY Financial Year SEA South East Asia

IMR Inspection Maintenance and Repair TRCF Total Recordable Case Frequency

JV Joint Venture

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Vessel Listing (1 of 3)

Vessel Name Flag Type Year Built Bollard Pull LOA BHP

/DWT Berths

MMA INSCRIPTION SINGAPORE PSV, DP2 2012 - 87.1 5188 DWT 48

MERMAID LEEUWIN SINGAPORE PSV 2013 - 82.2 4000 DWT 28

MMA LEVEQUE SINGAPORE PSV, DP2 2010 - 75 3100 DWT 40

JAYA VALOUR MALAYSIA PSV 2013 - 83.6 5509 DWT 60

JAYA VALIANT SINGAPORE PSV 2014 - 76 3500 DWT 44

MERMAID VIGILANCE SINGAPORE PSV, MULTI PURPOSE 2009 - 70 2850 DWT 50

JAYA VICTORY SINGAPORE PSV 2014 - 76 3500 DWT 44

JAYA VIGILANT SINGAPORE PSV 2013 - 83.6 5188 DWT 60

MMA PRIDE SINGAPORE MULTI PURPOSE 2013 - 78 5150 148

MMA ALMIGHTY SINGAPORE AHTS 2010 67.3 58.7 5150 42

JAYA AMANDAM SINGAPORE AHTS 2009 61.7 58.7 4824 42

JAYA AMARA SINGAPORE AHTS 2009 60.2 58.7 4824 42

MMA CAVALIER SINGAPORE AHTS 2010 108 70 8000 50

MMA CENTURION SINGAPORE AHTS 2011 102.5 70 5940 50

MMA CHIEFTAIN SINGAPORE AHTS 2010 102 70 8046 42

MMA CONCORDIA SINGAPORE AHTS 2010 100 70.5 7890 42

MMA CONFIDENCE SINGAPORE AHTS 2011 105 70.5 7890 42

MDPL CONQUEROR SINGAPORE AHTS 2010 119.5 70.5 7890 42

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Vessel Listing (2 of 3)

Vessel Name Flag Type Year Built Bollard Pull LOA BHP

/DWT Berths

MDPL CONTINENTAL ONE SINGAPORE AHTS 2010 121 70.5 7890 42

JAYA CORAL SINGAPORE AHTS 2011 108 70 8000 50

JAYA CRYSTAL SINGAPORE AHTS 2012 104.2 70 7965 50

JAYA DAUPHIN SINGAPORE AHTS 2009 120 72.5 10730 42

JAYA DEFENDER SINGAPORE AHTS 2009 129 72.5 10730 42

DJM FORTUNE 3 SINGAPORE AHTS 2004 60 57.5 4750 42

JAYA MAJESTIC SINGAPORE AHTS 2014 160.7 78.2 12070 46

SEA HAWK 1 MALAYSIA AHTS 2009 155 75.4 12070 50

JAYA SEAL SINGAPORE AHTS 2004 65 62.9 5500 42

MERMAID VANQUISH SINGAPORE AHTS 2007 56 59.2 6772 42

MERMAID VANTAGE SINGAPORE AHTS 2009 66 59.2 5150 42

MERMAID VISION SINGAPORE AHTS 2009 105 67.8 8000 32

MERMAID VOYAGER AUSTRALIA DP1, AHTS 2009 66 59.2 5150 42

MERMAID RANGER AUSTRALIA AHT 2007 50.9 40 3872 18

MERMAID RELIANCE SINGAPORE AHT 2010 68.6 50 5218 30

MERMAID SUPPORTER AUSTRALIA AHT 2001 60 45 4800 20

MERMAID COVE AUSTRALIA AHT 2013 70.3 4 5620 22

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Vessel Listing (3 of 3)

Vessel Name Flag Type Year Built Bollard Pull LOA BHP

/DWT Berths

MERMAID SOUND AUSTRALIA AHT, AZIMUTH, OSV 2007 70 50 7341 22

MERMAID STORM AUSTRALIA AHT, AZIMUTH, OSV 1993 48 34 4000 15

MERMAID STRAIT AUSTRALIA AHT OSV, AZIMUTH, DPA 2012 69 52.4 7341 24

MMA CARVER AUSTRALIA AHT, AZIMUTH TUG 2000 47 32 3500 14

MMA INVESTIGATOR AUSTRALIA SUPPLY, MULTI PURPOSE 2006 30 54 3620 42

MERMAID SEARCHER AUSTRALIA SUPPLY, MULTI PURPOSE 2008 34 54 3200 34

MERMAID RESOURCE AUSTRALIA UTILITY 1996 - 27 2600 6

MERMAID ESPERANCE SINGAPORE BARGE 2010 - 76.2 - -

MERMAID REGENT AUSTRALIA BARGE 2010 - 73.2 - -

JAYA 300 SINGAPORE BARGE 2008 - 87.8 9114 DWT -

JAYA INSTALLER 10 PANAMA MULTI PURPOSE 2011 - 111.6 9582 DWT 300

MMA PRIVILEGE SINGAPORE MULTI PURPOSE 2015 - 90 10459 239

MMA PLOVER AUSTRALIA PSV 2015 - 81.7 4000 DWT 27

MMA BREWSTER AUSTRALIA PSV 2016 - 81.7 4000 DWT 27

Newbuild Vessels

MMA PRESTIGE SINGAPORE IMR 2016 - 87.8 3000 DWT 100

MMA PINNACLE SINGAPORE IMR 2016 - 87.8 3000 DWT 100

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